BlackBerry (BBRY) Q2 Release Contains No Bombshells, Thinks Analyst
- Top 10 News for 4/20 - 4/24: Comcast Cancels Time Warner Deal; Teva/Mylan/Perrigo Saga Continues; Big Names, Solid Earnings
- Comcast (CMCSA) Terminates Time Warner Cable (TWC) Merger Agreement (CHTR)
- Amazon.com (AMZN) Tops Q1 EPS by 1c, Sales Beat
- Mylan (MYL) to Begin Cash, Stock Tender of Perrigo (PRGO)
- Biogen (BIIB) Misses Q1 EPS by 6c; Revs Light
"The key question is whether there are issues that could cause a snag in Fairfax’s due diligence, in our view. While the company’s MD&A filing may provide more color, based on the company's earnings, we do not believe there is," said Um.
"Although BBRY’s unencumbered by debt, we do note a ~$500MM reduction in cash and equivalents that is concerning. Given that BBRY plans to restructure and wants to assume ~$2B in leverage, we are of the belief that the company should sell certain of the assets it has (like parts of its $1.3B in buildings/leasehold improvements/other) to bolster its cash position. We believe that Fairfax being a sophisticated investor is likely cognizant of this issue and will address it appropriately to stem further erosion in the company’s liquidity," added the analyst.
Wells Fargo has a Market Perform rating on BlackBerry with a price target of $8 to $9.
For an analyst ratings summary and ratings history on BlackBerry (NASDAQ: BBRY) click here. For more ratings news on BlackBerry click here.
Shares of BlackBerry closed at $7.95 yesterday, with a 52 week range of $7.75 to $17.22.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Bernstein's Sacconaghi Previews Apple (AAPL) Q2; Raises Est, PT and Sees Large Capital Return Plan
- Amazon (AMZN) Price Target Lifted to $510 at Goldman Sachs; Accelerating Revenue Growth
- Robert Half (RHI) PT Raised to $63 at Piper Jaffray
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS View
Related EntitiesEarnings, Wells Fargo
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!